Midday Market Update: New Week, New Hopes | ETF Trends

Traders on Wall Street greeted the markets this morning with fresh optimism, thanks to a host of earnings reports that are sending positive signals about the economy, stocks and exchange traded funds (ETFs).

Among the key earnings news today:

  • Gannett (NYSE: GCI), the publisher of USA Today, managed to post a profit even as revenue fell
  • Toy-maker Hasbro’s (HAS) income also rose amid cost-cutting by the company
  • After the market closes today, tech giants Apple (Nasdaq: AAPL) and Texas Instruments (NYSE: TXN) will report earnings
  • Caterpillar (NYSE: CAT) will report earnings on Tuesday

Oil’s price continued to rise, inching above $79 a barrel before stepping back. Investors are watching earnings reports for any signs that consumers are feeling confident again, reports Pablo Gorondi for the Associated Press. United States Oil Fund (NYSEArca: USO) is trading flat this morning. (Where is gas going next?)

Demand for Treasuries has stayed strong, even though the budget deficit now well past the $1 trillion mark, the government has sold a record amount of debt and the dollar hasn’t been this weak since August 2008. (Why you should watch Treasury ETFs).

Foreign buyers have stepped up their holdings to a record $3.5 trillion. Demand in the United States has been kept afloat by a rising savings rate and lingering worries that the market’s rally is overdone, report Liz Capo McCormick and Daniel Kruger for Bloomberg. iShares Barclays 7-10 Year Treasury (NYSEArca: IEF) is trading flat so far today.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.